A Golden Opportunity

By

Edward P. Lazear and

James M. Poterba

Updated Nov. 1, 2005 12:01 a.m. ET

Changes to the tax code are frequent, but opportunities for fundamental reform are rare. The mid-1980s offered one such opportunity, when the Tax Reform Act of 1986 simplified the income tax, removed many tax distortions and encouraged economic growth. Today presents another historic opportunity to begin the tax reform process, when the President's Advisory Panel on Federal Tax Reform delivers its report to the secretary of the Treasury.

A tax system should generate the government's required revenue with as little economic...